A number of theories have been developed about how to improve organizations and processes. One such theory is known as the “theory of constraints”.
The theory of constraints (ToC) provides a formula for continuously improving the performance of an organization. In a preliminary step, the goal of the organization is identified, by answering the question, what is it the organization's mission to produce?
Next, in the first step of an ongoing cycle of steps, a constraint is identified, where the constraint is the single factor that limits the organization from producing more of its goal. In the second step, the constraint is “exploited” in that it is made to operate in a manner such that it makes its maximum possible contribution to producing the organization's goal. In the third step, the organization is subordinated to the constraint, in that all other processes are aligned to produce what the constraint needs to operate. In the fourth step, the constraint is “elevated” in the sense that the capacity of the constraint itself is increased. In the next step, which becomes the first step of the next cycle, the next constraint (i.e., the constraint as in effect after elevation of the first constraint) is identified.
The theory of constraints also gives rise to a manufacturing model that is referred to as “Drum-Buffer-Rope” (DBR). The “drum” is the current constraint—the resource that sets the pace for the entire process. The “buffer” is a stock of the material required to feed the drum, and is intended to keep the drum from “running dry”. The “rope” is a logistics chain that connects the buffer to a large reservoir of material to keep the buffer at its intended level of supply.
Both for the purposes of the ToC philosophy of continuous improvement and for the DBR manufacturing model, it is crucial to identify constraints or bottlenecks in a process that is being managed. The present inventor now proposes computer-based decision support tools to aid in identifying (i) process bottlenecks, and (ii) mismatches between planned activities and process capabilities.